Question

Sunland Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $20 per year. During November 2017, Sunland sells 10,980 subscriptions for cash, beginning with the December issue. Sunland prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. The company has a December 31 year-end.

Prepare the entry in November for the receipt of the subscriptions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Nov.	enter an account title to record the receipt of the subscriptions in November	enter a debit amount	enter a credit amount
	enter an account title to record the receipt of the subscriptions in November	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Prepare the adjusting entry at December 31, 2017, to record subscription revenue in December 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 31	enter an account title for the adjusting journal entry on December 31, 2017	enter a debit amount	enter a credit amount
	enter an account title for the adjusting journal entry on December 31, 2017	enter a debit amount	enter a credit amount

eTextbook and Media

List of Accounts

Prepare the adjusting entry at March 31, 2018, to record subscription revenue in the first quarter of 2018. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Mar. 31	enter an account title for the adjusting journal entry on March 31, 2018	enter a debit amount	enter a credit amount
	enter an account title for the adjusting journal entry on March 31, 2018

Answer 1

Date	Account Titles and Explanation	Debit	Credit
Nov.	Cash	219600		=10980*20
	Unearned Subscription Revenue		219600
Date	Account Titles and Explanation	Debit	Credit
Dec. 31	Unearned Subscription Revenue	18300		=219600*1/12
	Subscription Revenue		18300
Date	Account Titles and Explanation	Debit	Credit
Nov.	Unearned Subscription Revenue	54900		=219600*3/12
	Subscription Revenue		54900